A few days ago, the 13th China Dairy Industry Conference, the 2022 China Dairy Industry Top 20 (D20) Summit and the 2022 China Dairy Industry Exhibition three major industry events opened simultaneously in Jinan, Shandong. The theme of “Stable, Long-term, High-Quality Development and Competing for the Examination” shows the five connotations of the dairy industry in terms of responsibility, strategy, industry, culture and brand. As a representative of China’s dairy industry leading the “fresh” force, New Hope Dairy was invited to attend the event. With his outstanding contribution to the exploration of the “fresh” value of the national dairy industry, New Hope Dairy Chairman Xi Gang was awarded the title of “Excellent Dairy Worker” , In addition, by taking the lead in launching the digital upgrade strategy in the industry and achieving substantial results, New Hope Dairy deserves to be selected as the “Excellent Case of Digital Transformation of China’s Dairy Industry”.
Confidence in the dairy industry stems from high-quality development
This conference put forward the key to guide the establishment of the “confidence soul” of China’s dairy industry. At the opening ceremony, representatives of the new dairy industry participated in the theme activity of reciting the “confidence of dairy industry people”, and shared the national dairy industry people’s strategic feelings of “the greatest of the country” “.
As an important starting point for the “rural revitalization” and “healthy China” strategies, the dairy industry has always been a key civilian production industry that the country has paid close attention to. In February this year, the “14th Five-Year Plan” Action Plan for Improving the Competitiveness of the Dairy Industry issued by the Ministry of Agriculture and Rural Affairs clearly stated that nine measures should be taken to promote the high-quality development of the dairy industry and improve the quality, efficiency and competitiveness of the dairy industry. The measures continue to inject policy dividends into the development of the national dairy industry.
“The growth of milk consumption is the foundation of confidence.” Gao Hongbin, former vice minister of agriculture and honorary president of the China Dairy Association, pointed out at the meeting that in 2021, my country’s per capita consumption of dairy products will increase to 42.3 kilograms, an increase of about 4 kilograms year-on-year, which is a close Consumption has grown the fastest in the past decade, and people are paying more and more attention to health. “Milk has become a must-have food.”
Corresponding to the favorable policies and the market, it is the industrial confidence of Chinese dairy industry people to continue to promote high-quality development. Taking New Dairy as an example, with its persistent pursuit of “freshness” and “high quality” and keen innovation, it has achieved rapid and steady growth in both “quality” and “quantity”.
Relevant data show that in the past three years, the new dairy industry has maintained a steady growth trend, with revenue growth rates of 14.14%, 18.92%, and 32.87%, respectively, and the growth rate of net profit attributable to the parent has reached 0.41%, 11.18%, and 15.23%. Affected by the epidemic, fluctuations in raw material prices, and fierce competition in the industry, revenue and profits continued to increase, and the stability exceeded the industry average.
In the low-temperature fresh milk category, a key segment of the industry with high growth, the revenue from the main fresh milk business of New Dairy has continued to grow at a high level, and its share has increased for 12 consecutive months. Its market share ranks among the top three in the country. Fresh Value Barriers”.
At the same time, China’s dairy industry, represented by the new dairy industry, has achieved fruitful results in aspects such as the distribution of high-quality milk sources, biotechnology innovation, digital transformation and upgrading, and green and low-carbon development. The diversified demand for products has firmly occupied the dominant position in enhancing the competitiveness of the national dairy industry brand and continuing to promote high-quality development, further establishing and consolidating the “spirit of confidence” of China’s dairy industry.
New Dairy Leads “Fresh” Value
Behind the confidence of the Chinese dairy industry is the wisdom and hard work of Chinese dairy people. New Dairy Chairman Xi Gang was awarded “Excellent Dairy Worker” by the conference. With the joint efforts of him and his team, New Dairy has changed from a local dairy company to a national brand with continuous growth and profitability, and a listed company with a market value of 10 billion. And lead the “fresh” value, and made valuable wealth for the innovation and development of China’s dairy industry.
Different from the common national room temperature milk brands and regional low temperature milk brands at that time, under the blessing of New Hope Group, the new dairy industry led by Xi Gang has innovatively stepped out of a new industry based on “freshness” and regional mergers and acquisitions. the “third way”.
On the one hand, New Dairy has established the development strategy of “Fresh Strategy” since 2010, and has been upgraded to the third-generation “Fresh Cube” strategy, adhering to the theme of “Fresh” and implementing “Fresh + Live” as the guide Brand strategy, carry out product innovation and category structure adjustment, focusing on creating “double strong” fresh categories of low-temperature fresh milk and low-temperature yogurt, and innovatively launched “24-hour” series of fresh milk products, “Chuxin” series of low-temperature yogurt and other star products, A very distinctive and competitive fresh product matrix has been formed.
In order to realize the greater release of “freshness” value, New Dairy focuses on the distribution of high-quality milk sources. While building its own pastures in many high-quality natural environment areas across the country, it also cooperates with the leading dairy farming enterprises in China, Modern Dairy, Australia and Asia. The group established strategic cooperation and took the lead in promoting the “China High-quality Milk Project” in the industry, becoming the brand with the earliest participation and the most approval by its subsidiaries, laying a solid foundation for its development potential.
On the other hand, with the advent of the Internet era and the development of the low-temperature logistics industry chain, the regional restrictions on low-temperature milk have been gradually broken. It has gained influence in many markets in Northwest China, East China, North China, and Central China, and has grown into the only “dairy enterprise combined fleet” in China’s dairy industry with “freshness” as its core value.
It is worth mentioning that for the more than ten major dairy brands acquired by its subsidiary, New Dairy does not want to be a national unified brand model in terms of strategy, but to form a “1+N” brand structure. The brand operates independently. While creating national major items, it also develops regional specialties. In response to new consumer needs in subdivided fields, it is promoted through the project partner model to achieve optimal allocation of resources and maximize the use of various products. Regional market synergies.
New Dairy’s 2022 interim report shows that in the first half of the year, its operating income was 4.78 billion yuan, a year-on-year increase of 10.76%, and its net profit attributable to the parent was 189 million yuan, a year-on-year increase of 29.42%. Dairy analyst Song Liang believes that the rapid growth in the performance of the new dairy industry is due to three aspects. First, the strategy of going north has achieved obvious results, and the milk source foundation has been guaranteed; second, the low-temperature strategy has exerted a scale effect, and low-temperature products have performed well, especially the realization of low-temperature white milk. Breakthrough; thirdly, the market dynamic sales strategy is easy to handle, and high-end products are more vigorous. Practice has proved that the differentiated development path chosen by Xi Gang and the new dairy team has achieved remarkable results.
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“The goal of the digital strategy of the new dairy industry is to realize the technological empowerment of all scenarios,” said Xi Gang, “Through the implementation of the digital strategy, the new dairy industry will make the birth of every bottle of milk in the future, from the pastures, production sites, etc. It supports the digital transformation of the whole chain from the logistics end to the consumer end.” At the conference site, New Dairy made an in-depth analysis and sharing of its digital transformation achievements in combination with the theme of the conference, and won the “China Dairy Industry Digital Transformation Excellent Case Collection” award in one fell swoop.
Under the vision of “fresh every day, every link of digital”, the new dairy industry is oriented by user experience, around the dairy value chain, and proposes a digital transformation strategy – driven by digital scenarios, to build the company’s “digital transformation strategy house”, empowering Can develop company strategy.
Upstream, New Dairy is striving to build smart pastures. Based on the Internet of Things and big data technology, it builds an intelligent pasture raising environment around the whole life stage of dairy cows, which not only improves the health and welfare of dairy cows, but also improves the production efficiency and productivity of dairy farms in an all-round way. Dairy quality. Taking the Qingbaijiang Smart Ranch of New Dairy as an example, the pasture is equipped with “electronic ear tags” and “smart collars” for each of more than 1,300 dairy cows, and is connected to the Internet of Things platform. According to the dynamic data of dairy cows collected by the system, managers can view the dairy cows in real time. physical condition and respond accordingly.
In the midstream, New Dairy took the lead in building a digital factory, and implemented a “cloud deployment” architecture on the factory side to realize data and information exchange among its more than 10 dairy factories. In the digital factory, the central control system controls the production equipment in the factory according to the real-time production data to achieve a high degree of automation and unmanned production. system. In 2021, the first phase of the digital factory project was officially launched in three factories in Sichuan Xinhua West, Hebei Tianxiang, and Anhui Baidi. The entire process of equipment management has been online, and the coverage rate of automatic equipment data collection has reached 95%. Electronic records The coverage rate reaches 100%.
In the downstream, New Dairy is committed to building a “Fresh GO 2.0 platform” that is “open, sharing, ecological, platform empowerment, and benefit co-creation”. “All channels”, “all scenarios”, “all links” and “all touchpoints” are connected. “Fresh GO2.0” integrates global digital users, opens up the original independent online and offline retail channels, and accurately touches users through layers. . In this process, New Dairy has also accumulated rich digital assets, with over 11 million digital users in the whole region, helping to achieve product innovation, business structure upgrade and brand value reconstruction with users as the core.
“China’s dairy industry has passed the development stage of ‘a thousand miles in a day’, and the future is a development of ‘step-by-step, steady and far-reaching’.” Gao Hongbin pointed out that in the past, the development of China’s dairy industry mainly relied on scale improvement, and the future is not about scale, but the development resilience of enterprises , we must do a good job in transformation and upgrading, cost reduction and efficiency enhancement, technological innovation and green development, and enhance the core competitiveness of the industry. Looking at the development of the new dairy industry over the years, the leaders of the Chinese dairy industry represented by the new dairy industry have a deep understanding of this, and have carried out comprehensive exploration and layout around high-quality development. The new dairy industry proposes to “double in three years, and strive to enter the leading ranks of the global dairy industry in five years”, and has steadily moved towards this goal, which has injected more confidence and confidence into the soul of self-confidence and the continuous contribution to the promotion of revitalization and development.